All Forum Posts by: John M.

Hi guys -

Looking for some quick advice -  Would you use HR Block/TurboTax over a RE Tax Preparer if you were a small "start-up" in 2018?  Why or why not?  

Thanks,

John

@Seth Holmen, @Steven Eitreim

Thank you both.

There are no cabinets under this bar - there is ample storage in the kitchen.   It will just be used for dining on one side, standing on the other.  

Do you recommend an overhang on the 'standing' side? 

How deep does the island framing need to be in order to support a 12 inch overhang?

Hi everyone. I'm putting a long bar in one of my flips. The bar will separate a living area from the kitchen and will be about 10 feet long. If the bar is made to 36 inches tall, how deep should the bar top be so that it can facilitate seating in the kitchen? I believe 36 inch tall is normal. Please let me know if I'm wrong.

Originally posted by @Jessica Zolotorofe:

What exactly are you looking to do? Can you get some rental income if you purchase? Or flip it? Is there sufficient equity to take subject to and get a second lien? Does the seller want to be the wrap-around lender?

I am trying to make something work for the owner.  He recently purchased and no longer wants the property.  He cannot find the type of tenants he wants, but I would guess section8 would pay well for the property. 

There is virtually no equity in the property. 

The property has already been fixed, so there are no immediate improvements that can be made.

 Best case would be him to accept section 8 which he doesn't want.  Otherwise, wrap it and earn the spread.

Hi. I have a newly renovated property in the lower vailsburg section of Newark, NJ.  The owner wants out and is willing to walk away for what they sold.  There's not much that can be done to add value at this point (it was just renovated and flipped).  I'd like to wrap a mortgage but am looking for some direction.  Please reach out if you are experienced with wraps and this section of Newark.

Malik, Please send me information on the property: [email protected]

Congrats!

Hi - Ironbound certainly.  Downtown, probably.  North Newark, is solid too (if you can find a home at the right price, or near one of the parks).

I'd stay away from South Ward honestly.  The neighborhoods are very, very rough.  And you'd have issues collecting rent, managing tenants,  finding contractors to get out there and do the work, etc.   But again, just my $0.02. To each their own.

If you're trying to roll the dice on mid-term appreciation, I'd look into the areas with great school districts and try to snatch up something on the cheap. 

Hi Nailah -

As always, the answer is *it depends* (on your funding choice, on your expected return, etc).

For me, the profit here is ok --- but not great. You seem to be very close to the 70% ARV - repairs formula, which is great. But if something goes sideways, you may not make a profit.

Please take  another look at the following things:

1. Your upfront and backend closing costs are light.  You will need to add title, survey, county recording charges, etc into the mix.  Plus quarterly taxes on the front end.
2. Are your holding costs accurate?  Don't forget about taxes/utilities/water.
3. The outside of the home looks pretty good from the single picture.  What kind of work needs to be done inside?